Major focus of the govt is to bring back the growth momentum: Finance Minister
Updated: Nov 01, 2014 12:23:09pm
New Delhi, Nov 1 (KNN) Union Finance Minister Arun Jaitley has said that the major priority of the government is to bring back growth momentum into the country’s economy. He said that higher growth leads to more revenue collections, better employment opportunities and increase in government’s capacity to finance social sector programs among others.
Speaking at the first meeting of the Consultative Committee attached to the Ministry of Finance on the subject “Sustaining Growth Momentum – The Road Ahead,” the Finance Minister Jaitley said that in the last couple of years, there was a slowdown in industry including manufacturing sector and decline in the investment resulting in growth of less than 5 per cent, according to an official release.
He said the major priorities of the Government would be to revive and sustain higher GDP growth, increase savings, fiscal consolidation, keeping the CAD at moderate level, reviving investment cycle, encouraging growth in manufacturing sector, augmenting supply response to contain inflation especially food inflation, boosting infrastructure sector and exports, rationalize subsidies and reforms in direct and indirect taxes among others.
During the meeting members of the Committee gave various suggestions to boost growth. They stressed on the need to expedite the decision making process and give more thrust to the agriculture sector to boost agriculture production and more remunerative prices to farmers for their produce.
They suggested all efforts should be made to accelerate growth momentum to a favourable level and then sustain it. They asked for liberalizing policies and streamlining of various laws in order to give boost to industrial sector including the manufacturing sector.
Committee members also pointed out the major challenges for the Government to tackle the problem of increasing credit supply and controlling inflation at the same time. In their opinion, banks should be asked to expedite the decision making process for giving credit facilities to both agriculture and industrial sectors.
Another suggestion was that farmers be given direct benefit by higher support prices for their produce rather than through subsidies which most of the times do not reach them. Also, that policies and procedures should be simplified to enhance the growth.
Other suggestions included - a review of existing Crop Insurance Scheme as the farmers have not been benefitting for the same; assurance that defence FDI does not affect adversely the local defence manufacturers; and exemption of income tax be extended to dairy sectors as in the case of the agriculture sector.
The Finance Minister assured that the points raised would be given due consideration at the time of decision making and framing policies. (KNN/ES)
Speaking at the first meeting of the Consultative Committee attached to the Ministry of Finance on the subject “Sustaining Growth Momentum – The Road Ahead,” the Finance Minister Jaitley said that in the last couple of years, there was a slowdown in industry including manufacturing sector and decline in the investment resulting in growth of less than 5 per cent, according to an official release.
He said the major priorities of the Government would be to revive and sustain higher GDP growth, increase savings, fiscal consolidation, keeping the CAD at moderate level, reviving investment cycle, encouraging growth in manufacturing sector, augmenting supply response to contain inflation especially food inflation, boosting infrastructure sector and exports, rationalize subsidies and reforms in direct and indirect taxes among others.
During the meeting members of the Committee gave various suggestions to boost growth. They stressed on the need to expedite the decision making process and give more thrust to the agriculture sector to boost agriculture production and more remunerative prices to farmers for their produce.
They suggested all efforts should be made to accelerate growth momentum to a favourable level and then sustain it. They asked for liberalizing policies and streamlining of various laws in order to give boost to industrial sector including the manufacturing sector.
Committee members also pointed out the major challenges for the Government to tackle the problem of increasing credit supply and controlling inflation at the same time. In their opinion, banks should be asked to expedite the decision making process for giving credit facilities to both agriculture and industrial sectors.
Another suggestion was that farmers be given direct benefit by higher support prices for their produce rather than through subsidies which most of the times do not reach them. Also, that policies and procedures should be simplified to enhance the growth.
Other suggestions included - a review of existing Crop Insurance Scheme as the farmers have not been benefitting for the same; assurance that defence FDI does not affect adversely the local defence manufacturers; and exemption of income tax be extended to dairy sectors as in the case of the agriculture sector.
The Finance Minister assured that the points raised would be given due consideration at the time of decision making and framing policies. (KNN/ES)
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